Pty Ltd or Sole Trader - Which is best for you?

[Toolbox Tip] Sole trader vs Limited company
Whichever structure you choose, each type brings its own risks.
This week, we'll take a closer look at the benefits and drawbacks of being a sole trader vs a proprietary limited company.
Don't rush into making a decision.
Watch this video.
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[@mabonagazangeni79]

thank you for clearing out the terminologies in dfferent countries🔥🔥🔥

[@CWTakilmwa]

Great video

[@smallfishcoach]

Thanks!

[@ebrox97]

Thanks for the video Jon.
I'm still undecided on which business structure to go with, would you recommend going as a sole trader first and then going pty ltd if things grow? or is it better to fully decide before hand? Thanks mate

[@smallfishcoach]

Alex, the reason to choose Pty td is to protect yourself and your assets if things go wrong. Usually, when you first start out the risk is small - risk of creditors and risk of being sued. And Pty Ltd costs a bit more - $2000 per year - has to do its own tax return, basically. So usually, sole trader first but get to Pty Ltd before you get to $1m

[@nextstepinvest2268]

Great video! If your starting a side hustle and your current job pays over $100 000 would you recommend setting up a company for the side hustle? Since the income is high already for the primary job?

[@smallfishcoach]

I would be thinking more about risk to your assets than the level of income from each income stream. The reason to set up a company or a trust to own your investments is to protect your assets in case something goes wrong in your business (and vice versa). I know some investment advisers suggest you set up companies and trusts if you are investing in property. My expertise is limited to business, I'm afraid. If you want help with investments, chat to Jeff Banks at Property Portfolio Solutions. If you're thinking about the income from a business and a side hustle, best to take the situation to your accountant. That's their field more than mine

[@ThomasMartin-m9x]

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